September 7, 2017, Introduced by Reps. Sneller, Love, Gay-Dagnogo, Chirkun, Lasinski, Cochran, Sabo, Faris, Geiss, Elder, Green, Clemente, Sowerby, Chang, Camilleri, Brinks, Moss, Hammoud, Wittenberg, Peterson, Zemke, Dianda and Jones and referred to the Committee on Commerce and Trade.
A bill to amend 1936 (Ex Sess) PA 1, entitled
"Michigan employment security act,"
by amending section 62 (MCL 421.62), as amended by 2016 PA 522.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 62. (a) If the unemployment agency determines that a
person has obtained benefits to which that person is not entitled,
or a subsequent determination by the agency or a decision of an
appellate authority reverses a prior qualification for benefits,
the agency may recover a sum equal to the amount received plus
interest by 1 or more of the following methods: deduction from
benefits or wages payable to the individual, payment by the
individual in cash, or deduction from a tax refund payable to the
individual as provided under section 30a of 1941 PA 122, MCL
205.30a. Deduction from benefits or wages payable to the individual
is
limited to not more than 50% 20%
of each payment due the
claimant. The unemployment agency shall issue a determination
requiring restitution within 3 years after the date of finality of
a determination, redetermination, or decision reversing a previous
finding of benefit entitlement. Except in the case of benefits
improperly paid because of suspected identity fraud, the
unemployment agency shall not initiate administrative or court
action to recover improperly paid benefits from an individual more
than 3 years after the date that the last determination,
redetermination, or decision establishing restitution is final.
Except in the case of benefits improperly paid because of suspected
identity fraud, the unemployment agency shall issue a determination
on an issue within 3 years from the date the claimant first
received benefits in the benefit year in which the issue arose, or
in the case of an issue of intentional false statement,
misrepresentation, or concealment of material information in
violation of section 54(a) or (b) or sections 54a to 54c, within 3
years after the receipt of the improperly paid benefits unless the
unemployment agency filed a civil action in a court within the 3-
year
period ; the individual made an intentional false
statement,
misrepresentation,
or concealment of material information to obtain
the
benefits; or the unemployment agency or issued a determination
requiring restitution within the 3-year period. The time limits in
this section do not prohibit the unemployment agency from pursuing
collection methods to recover the amounts found to have been
improperly paid. Except in a case of an intentional false
statement, misrepresentation, or concealment of material
information, the unemployment agency shall waive recovery of an
improperly paid benefit if the payment was not the fault of the
individual and if repayment would be contrary to equity and good
conscience and shall waive any interest. If the agency or an
appellate authority waives collection of restitution and interest,
except as provided in subdivision (ii), the waiver is prospective
and does not apply to restitution and interest payments already
made by the individual. As used in this subsection, "contrary to
equity and good conscience" means any of the following:
(i) The claimant provided incorrect wage information without
the intent to misrepresent, and the employer provided either no
wage information upon request or provided inaccurate wage
information that resulted in the overpayment.
(ii) The claimant's disposable household income, exclusive of
social welfare benefits, is at or below the annual update of the
poverty guidelines most recently published in the Federal Register
by the United States Department of Health and Human Services under
the authority of 42 USC 9902(2), and the claimant has applied for a
waiver under this subsection. A waiver granted under the conditions
described in this subdivision applies from the date the application
is filed.
(iii) The improper payments resulted from an administrative or
clerical error by the unemployment agency. A requirement to repay
benefits as the result of a change in judgment at any level of
administrative adjudication or court decision concerning the facts
or application of law to a claim adjudication is not an
administrative or clerical error for purposes of this subdivision.
(b)
For benefit years beginning on or after October 1, 2000,
if
If the unemployment agency determines that a person claimant has
intentionally made a false statement or misrepresentation or has
concealed material information to obtain benefits, whether or not
the
person claimant obtains benefits by or because of the
intentional false statement, misrepresentation, or concealment of
material
information, the person unemployment
agency shall, in
addition
to any other applicable interest and penalties, have his
or
her cancel the claimant's rights to benefits for the benefit
year
in which the act occurred canceled as of the date the claimant
made the false statement or misrepresentation or concealed material
information, and shall not use wages used to establish that benefit
year
shall not be used to establish another benefit year. A
chargeable employer may protest a claim filed after October 1, 2014
to establish a successive benefit year under section 46(c), if
there was a determination by the unemployment agency or decision of
a court or administrative tribunal finding that the claimant made a
false statement, made a misrepresentation, or concealed material
information
related to his or her the claimant's
report of earnings
for a preceding benefit year claim. If a protest is made, the
unemployment agency shall not use any unreported earnings from the
preceding benefit year that were falsely stated, misrepresented, or
concealed
shall not be used to establish a benefit year for a
successive claim. Before receiving benefits in a benefit year
established within 4 years after cancellation of rights to benefits
under
this subsection, the individual, claimant, in addition to
making the restitution of benefits established under subsection
(a), may be liable for an additional amount as otherwise determined
by the unemployment agency under this act, which may be paid by
cash, deduction from benefits, or deduction from a tax refund. The
individual
claimant is liable for any fee the federal government
imposes with respect to instituting a deduction from a federal tax
refund. Restitution resulting from the intentional false statement,
misrepresentation, or concealment of material information is not
subject
to the 50% 20% limitation provided in subsection (a).
(c) Any determination made by the unemployment agency under
this section is final unless an application for a redetermination
is filed in accordance with section 32a.
(d) The unemployment agency shall take the action necessary to
recover all benefits improperly obtained or paid under this act,
and to enforce all interest and penalties under subsection (b). The
unemployment agency may conduct an amnesty program for a designated
period under which penalties and interest assessed against an
individual owing restitution for improperly paid benefits may be
waived if the individual pays the full amount of restitution owing
within the period specified by the agency.
(e)
Interest recovered under this section shall must be
deposited in the contingent fund.
(f)
An The unemployment agency shall not make a determination
that a claimant made an intentional false statement,
misrepresentation, or concealment of material information that is
subject
to sanctions under this section shall not be based solely
on a computer-identified discrepancy in information supplied by the
claimant or employer. An unemployment agency employee or agent must
examine the facts and independently determine that the claimant or
the employer is responsible for a willful or intentional violation
before the unemployment agency makes a determination under this
section.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.